BAE Systems yesterday landed a £2.5billion deal to supply fighter jets to Oman but its shares fell as investors fretted about the longer term prospects of its defence business.

The group signed a contract to ­supply 12 Eurofighter Typhoon and eight Hawk training aircraft to Oman’s Royal Air Force.

BAE, led by chief executive Ian King, will deliver the jets from 2017, extending Typhoon production by up to a year. It said the deal, widely expected after talks with Oman were flagged earlier in the year, would safeguard the jobs of 6,000 staff and about 40,000 at other suppliers.

The firm said: “This agreement builds on a long history of close ­cooperation between BAE Systems and the Omani armed forces.”

Broker Investec said: “We view any Eurofighter export order as a welcome extension to the programme.”

But the stock dropped 2p to 346p as markets worried that a price row may delay the completion of a separate £4.5billion sale of 72 Typhoons to Saudi Arabia.

We view any Eurofighter export order as a welcome extension to the programme

Broker Investec

We view any Eurofighter export order as a welcome extension to the programme

Broker Investec

Investors have also continued to ponder the future of the company ­following the collapse earlier this year of BAE’s planned merger with European defence giant EADS.

Germany is thought to have scuppered the deal after voicing concerns about jobs and national control of the business. Speculation continues about whether the tie-up could still go ahead, with one industry source saying German Chancellor Angela Merkel may be more amenable to a deal after the country’s elections next year.

However EADS is thought to be ­having second thoughts about the plan after some of its shareholders voiced concerns about the merits of taking on BAE’s heavily US-focused defence business, when governments are cutting military budgets. Investec said: “Trading challenges in BAE’s core US market remain.”

Societe Generale aerospace analyst Zafar Khan said an eventual break-up of BAE, possibly by hiving off its US operations, may now be more likely than an EADS tie-up.

“We suggested BAE should launch an initial public offering of, or demerge, the US business,” he said.

A BAE spokeswoman said: “That would be speculative and we don’t comment on speculation.”